Refer to Which of the following statements is true A The firm will

Refer to which of the following statements is true a

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  • ECON 220
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44) Refer to Figure 12-17. Which of the following statements is true? A) The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit. New firms will enter the market and shift the market supply curve to the left. B) The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit, but it would earn a greater profit if it produced at the lowest point on the ATCcurve. C) The firm will produce 30 thousand pounds of apples in the short run and earn an economic profit. New firms will enter the industry; as a result, the firm will be forced to exit the industry in the long run. D) The firm will produce 30 thousands pounds of apples in the short run and earn an economic profit. In the long run the firm will break even. Answer: D 47) A firm could continue to operate for years without ever earning a profit as long as it is producing an output where
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48) A firm would decide to shut down if its production resulted in 12.6 Perfect Competition and Efficiency 3) The perfectly competitive market structure benefits consumers because Figure 12-20 8) Refer to Figure 12-20.If the market price is P1, what is the allocatively efficient output level? A) Q0B) Q1C) Q2D) There is no allocatively efficient output level because the firm is making a loss. Answer: B17) Which of the following describes a difference between allocative efficiency and productive efficiency in a perfectly competitive market?
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